Sony sells 4.9M PS3s in fiscal Q3; game division yields profit

by Ludwig Kietzmann { Jan 31st 2008 at 9:00AM }

So long, woods! A New York Times and Reuters report has laid out Sony's financial fortunes for its third fiscal quarter (which corresponds to the fourth quarter on your calendar), noting a 25% rise in net income to 200.2 billion yen ($1.9 billion) for the entire company. In the same period, the Japanese electronics manufacturer saw its games business turn a profit thanks to lowered production costs and aggressive PlayStation 3 price cuts.

Though Sony has lowered its 11 million sales goal to 9.5 million for the fiscal year ending in March, the company managed to sell 4.9 million PlayStation 3 consoles from October to December of 2007. The PlayStation Portable's performance has proved more satisfactory, as its sales goal has been raised from 10 million to 13 million.

Appending this news to Nintendo's continued domination, the Xbox's recent profitability and the game industry's monster year leads us to believe that there's a line of laughing executives forming in the bank right this minute.

[Via Engadget]

Tags: BreakingNews, NPD, Q3, Sales, Sony

Reader Comments (Page 1 of 2)

FidliousWong @ Jan 31st 2008 9:06AM

Is anyone suprised? Seriously.

KushielsScion007 @ Jan 31st 2008 9:17AM

Honestly?

I am...

Kudos to sony but I still hate their freaking guts and as long as they stay in distant 3rd this generation I won't care how much "profit" they make.

Plus when they release the cold hard evidence of this profitablity and the numbers then I'll determine just how impressed I am.

jsn @ Jan 31st 2008 9:17AM

I'm surprised they're pinning it on the PS3, but at the same time, I'm not. They turned a profit because of steady PS2 and PSP sales, not the ps3. They cut the price of a console that was already losing money, sell 5mil units and credit it with their turn around? It doesn't quite add up.

baby sea tuna @ Jan 31st 2008 9:18AM

Yes. I am surprised. Remember, when the PS3 was first released, the company itself wasn't doing so well (exploding laptops and whatnot).

KushielsScion007 @ Jan 31st 2008 9:26AM

Damn I completely forgot about the ps2...

Yeah so remove that I'm sure the ps3 is in the same red ink the 360 was a year ago.

The only difference being that MS made up for that with selling ridiculous amounts of games.

kbomb1upc @ Jan 31st 2008 10:49AM

So when Sony lose money its the PS3's fault but when they manage to sell almost 5 million units in just about 3 months and cut production price in half the PS2 gets the credit... That’s bull... I agree that the PS2 is still selling but if it was just the PS2 keeping Sony afloat they would have never have been that far in the hole. I agree that the PS2 and PSP is really helping Sony's game division but have to give props to the things they did to turn around the total perceptions people had for the PS3. About 4 or 5 months ago how many positive PS3 article would you find...You couldn’t even give away a PS3 (Sony tried)… So I give mad props to Sony and I hope all three companies keep making money so I can keep playing games…

Dan @ Jan 31st 2008 2:27PM

I am very surprised after reading this news. I remember hearing for awhile those sales weren’t as great as Sony was anticipating. With the price so high and sales low Sony needed to do something. I am sure that the price cut helped out the sales a lot. Sony needed to do something with such a high demand for the Wii. I personally don’t own any of the three hit systems on the market now. I own a PS2 and this works just fine for me. I think that the PS2 still sells well. A lot of people own one and it is still enjoyable to play. If the PSP is still selling well than great. Looks like Sony is making a good run. I hope it continues, I was always a fan of Sony and owned a Playstation since day 1. I think that the trends will continue. I for see Sony making a run in the market..ha

rip @ Jan 31st 2008 1:21PM

@ KushielsScion007:

umm, this is Sony reporting, not someone commenting on blog.

Therefore, the numbers, by law, should be correct. Unless Sony has decided to commit fraud, you have your "cold, hard evidence" direct from Sony.

As for Microsoft, yeah they posted a profit in the game division last quarter. Of course, they also booked that 1 billion for repairs to a poorly designed console in a prior quarter, getting it off the books.

And its been said many times, but I'll say it again: Microsoft, considering its numbers and the overall market, needs about 15 years of 360 profitability before that division is truly in the black. 7 billion in overall losses takes awhile to make up. In other words, it will never happen. Of course, it doesn't really hurt Microsoft, which is why its still in the gaming business. Must be nice to be able to light cigars with 100 dollar bills...

The 360 has a very nice library of games right now. But it will be interesting to see what happens when big titles like GTA4, MGS, and FF13 release. Not to mention that the PS3 is the best blu-ray player on the market. If Sony could manage to drop the price to 250-350, it would be all over for 360.

Raikage (Wii FC 5508 0487 4434 0992) @ Jan 31st 2008 3:02PM

Some PC gaming mag said it was the biggest failure of 2007... and the Wii was a keeper...

Kinda harsh...

FOXHOUND @ Jan 31st 2008 9:11AM

This has to be some kind of videogaming record... all companies involved in a single generation's console *and* handheld sales listing as "company-profitable".

Pretty impressive all around - especially considering the lack of innovative titles compared to days past, delays, and higher pricing.

maverick_saturn_626 @ Jan 31st 2008 9:18AM

Its not all bad, good news all round, just saw Xbox turn a profit, and Wii definitely, so I guess all eyes are on PS3 now, seems like they are coming out of that doom and gloom status, and despite delays, the line up is ever expanding too.

Cellien @ Jan 31st 2008 10:57AM

The PS2 and PS3 are the only reasons for PROFIT. I'm sure costs of the PS3 are dropping fast, but the console itself is still losing money.

maverick_saturn_626 @ Jan 31st 2008 11:01AM

All for the better I guess :P

Cellien @ Jan 31st 2008 11:08AM

Dammit, I meant PS2 and PSP :P... Where's the f*cking edit button!?!?!

maverick_saturn_626 @ Jan 31st 2008 11:31AM

PS3 is working its way up, thats all that matters, its not making anywhere near the losses it was making start last year, and if you look at the sales rate in comparison to 360s in the same time span, you'll see PS3 isn't doing half bad at all, if anything, they should see profit late this year on early next year if things keep up.

What they need to do is keep those games rolling in.

Matt B @ Jan 31st 2008 9:21AM

Thanks for a great system Sony. You can have much more of my monies this year thanks to your great software lineup. Bring it on.

baby sea tuna @ Jan 31st 2008 9:27AM

Hey Matt, there's someone at the door for you...

http://www.evangelicalsformitt.org/kool-aid.jpg

KushielsScion007 @ Jan 31st 2008 9:29AM

LMAO....

Oh God thats priceless...

Matt B @ Jan 31st 2008 9:39AM

Right back at you BST,

http://i165.photobucket.com/albums/u59/wolfclown1/fail.jpg

deaftly @ Jan 31st 2008 9:53AM

haha nice baby sea tuna

KayRazy Ken Kutaragi @ Jan 31st 2008 11:10AM

I agree Matt. Deep down inside they know the inevitability of the dominant PS3 software line-up this year. Resistance2 and Killzone2 alone would be huge, but then you have MGS4, GT5, LBP, White Knight Story, Jak and Daxter and on and on.
Should be a great year for the PS3, which will outsell the 360 (even in the US) by the end of the year.

Praise be to posters who post links to Christian Evangelical websites on a gaming blog.

ck @ Jan 31st 2008 11:50AM

Let's not get ahead of ourselves, Mr. KKK. I'm sure PS3's lineup is going to be killer. But let's not put Killzone 2 up there as "dominant" and a Jak and Daxter for the PS3 has not yet been announced - so I highly doubt it would come out this year. And what is this White Knight game? You're better off believing in FFXIII coming out in 2008 than WK becoming a must own.

No matter what, I'm guessing there's going to be a lot of game announcements this E3 and we are all going to wish we had enough cash to take in the greatness that will be this year - on all the consoles.

Korova @ Jan 31st 2008 12:21PM

White Knight Story? Its the game Mr. KKK is developing himself. It'll be burning hot.

KushielsScion007 @ Jan 31st 2008 9:30AM

Games Division = ps2 + psp + that psTRIPLE right?

Interesting...

However congrats to them for the good positive spin.

I'll come back to this thread when it reaches 100 comments or something...as it probably will.

name123 @ Jan 31st 2008 9:33AM

Oct-Dec '07
PS3: 4.9M
360: 4.3M

Xbox 360
2006: 8.8M
2007: 7.4M (first 2nd year decline ever?)

Microsoft touted their life-to-date sales because they were trying to hide the decline.

Microsoft cut corners for short-term gains, Sony is taking a short-term hit for a long-term payoff. HD-DVD was once ahead too, but it and the Xbox 360 never really had a chance.

Negativecool @ Jan 31st 2008 9:41AM

Biased much?

deaftly @ Jan 31st 2008 9:48AM

Dont feed the trolls, just vote them down and call it a day.

KayRazy Ken Kutaragi @ Jan 31st 2008 11:14AM

I say let them troll, it just makes me laugh. Oh yeah baby MY system that I designed is smashing baby yeah.

Praise be to Microsoft trolls

Negativecool @ Jan 31st 2008 11:35PM

WTF? I get voted down but the troll stays neutral.

Fuck you guys man.

deaftly @ Jan 31st 2008 9:48AM

read above

borland502 (SDF - Macross Ring) @ Jan 31st 2008 9:53AM

"read above"

Yes, but by posting anything in response you have already fed the trolls. Disguising your response in a meta comment on another post does not hit the troll in a weak spot for massive damage.

maverick_saturn_626 @ Jan 31st 2008 9:54AM

O dear, here comes the flaming and comparing... I'll just hide in this corner and throw a few insults to get you all rilled up.

Wii is childish
Ps3 fails
Xbox is for nerds

None of thse are true, but seeing as everyone else is throwing insults why not join in :) lol

GRANTED @ Jan 31st 2008 10:03AM

except the first.

Worst Review Ever @ Jan 31st 2008 10:05AM

And the second.

Cellien @ Jan 31st 2008 10:55AM

And the 3rd.

Cellien @ Jan 31st 2008 10:56AM

...Just wanted to be cool and finish the numbering. 8)

Crono (NDF - Knight of the Old School) @ Jan 31st 2008 9:56AM

And people say that I'm blinded to reality.

Worst Review Ever @ Jan 31st 2008 10:04AM

"Blowing Mario's penis" is still leagues ahead of "tossing Ratchet's salad" or "Krazy Ken rim-jobbing".

naxe @ Jan 31st 2008 10:06AM

I see a big downfall of our beloved video game companies. much like the music industry right now it is becoming too oversaturated with gimmicky companies pumping out any crap they can to make a buck.
their are too many games being released too close together by too companies.

last christmas was a record breaker for the video game industry and what goes up must come down.
sure it's nice now for us but how long can this last?

pretty soon the xbox is going to marry a laptop have two portables shave off it's protective cover and start acting Nuts.

Freelancepimp @ Jan 31st 2008 10:38AM

So basically what Sony did was cut back on the manufacturing and shipping off the PS3's and finally sold the systems that were in the wearhouse and stores that they produced last fiscal at a huge Loss. So even though those machines have already lost them huge amounts of money they can just wait till the next quarter and claim that those sales are profit.
Is that considered flame , or just a statement of what the hell really happened.

KayRazy Ken Kutaragi @ Jan 31st 2008 11:20AM

So, the 40gb that came out in 4th quarter 2007 was actually secretly hidden by retailers for almost a year.

Praise be to the delusional

Freelance @ Jan 31st 2008 11:56AM

@KayRazy ken
Wow Ken, you even put your own spin on a users comments. Talk about commitment.

naxe @ Jan 31st 2008 10:43AM

some people need better reading skills. it says that sony sold almost 5 million ps3(;) game division turns profit. as long as you turn a profit does it really matter how you do it? yes sony has the most consoles/handhelds of the three. if you dont count gameboy, ds, wii. but that tells you something about their character. a person that bought a ps2 can still enjoy it 7 years later. psp continues to be updated with new features that make it seem like it's never going to end. and the ps3 just needs time.

Josh @ Jan 31st 2008 10:45AM

As long as all 3 are doing good then I'm happy. If they all 3 do good then that ensures better competition.

maverick_saturn_626 @ Jan 31st 2008 10:59AM

We can see that, your avatar says '3', and seeing as 3 is always the key. Its a lucky number.

3 Musketeers
3 is a magic number
3 heads are better then 1

etc :P

LaughingTarget @ Jan 31st 2008 6:25PM

Look, a three-headed monkey!

Vegeta (aka Ska Oreo) @ Jan 31st 2008 10:56AM

How so? With there crazy japanese magic(I don't have to explain anything. It's magic!!!) I will admit that sony has improved since the launch of the ps3, but there is no evidence even suggesting that the ps3 is on it's way to beating anyone.

Kola @ Jan 31st 2008 11:06AM

And in other news 360 Core/Arcade owners can't play burnout paradise online because of a lack of hard drive. What does this have to do with the above article??

Absolutely nothing... just slightly amusing, 360 FTW.

KayRazy Ken Kutaragi @ Jan 31st 2008 11:17AM

"but there is no evidence even suggesting that the ps3 is on it's way to beating anyone."

Really? No evidence you say? So the FACT that a more expensive system with LESS games outsold the cheaper system with MORE games during the CRITICAL 4th quarter is NOT evidence?

Praise be to IGNORANT Microsoft fanboys.